Reminiscent of the gloom and doom articles of October 2008 regarding the gold price, a sudden spate of anti-gold propaganda and short-term bearish calls for the yellow metal have hit the Web. Sentiment in New York and London must be nearing a tipping-point level toward another capitulation of selling.
As of Tuesday in early afternoon trading in NY, gold stands at $1,556.73, trading below $1,600 for four straight trading days. Reports of aggressive Asian buying of physical metal continue to stream in.
Because gold has not ‘decoupled’ from the equities market as speculated by some, another post-Lehman swan dive in the gold price is now expected by many influential and savvy investors and money managers, which, if that scenario materializes, the gold price could result in another incredible buying opportunity—a gift from the money Gods, if you will.
And the Fed would welcome the collapse, as well, as Bernanke desperately needs political cover of falling oil and precious metals prices to once again hasten more money printing to pay for trillion$ in U.S. budget deficits.
Charles Nedder of Nedder Research told Jim Puplava’s Financial Sense Newshour he anticipates a drop in gold to a cycle-low target price of $1,359 (approximately the 40-month MA) before rallying once again.
Since his call of July 2011 on Bloomberg Television, FX Concepts John Taylor hasn’t retracted his $1,000 gold target for 2012, and more specifically by the close of the month of May—this month.
Marc Faber still awaits a buying opportunity at gold prices closer to $1,300 than Taylor’s more draconian $1,000 target.
Jim Rogers posited a scenario for $1,000 gold in an interview with Business Insider, Tuesday, when he said that either a mass dumping of European gold to re-liquefy European banks would most likely slam the gold market, or a gold import ban in India would surely trigger wholesale selling of the precious metal.
Each of these four men view a drop in the gold price as a nice entry point for the remainder of the gold market.
However, there are those who just don’t ‘get it’ (or don’t want to get it): Jon Nadler, Dennis Gartman and NYU professor Nouriel Roubini—the private sector trio who have slithered into mainstream media with their typical nonsensical analysis and entertaining chatter—especially Roubini, who hilariously stated on his Twitter account, Monday, “Gold bugs are hiding deep in their gold caves pondering why gold isn’t rallying in spite of the sharp spike in risk-off sentiment.”
Look out for those ‘preppers’ who live in caves, according to the bizarre world of the Great Roubini.
And then, of course, the three-man love fest of Warren Buffett, Charlie Munger and Bill Gates have blessed us with their obviously staged performances, warning and ridiculing investors out of their gold positions, or for even considering gold as a hedge against financial collapse, currency debasement or dangerous geopolitical events. The rational for staying with paper money contributed by these three men all read like a child’s play—intentionally spoken in a dumb-down 6th-grade language level for Mr. and Mrs. Front Porch to echo chamber with their relatives and friends.
Munger went as far as likening gold investors to Nazi-era Jews who sought refuge from persecution.
Buffett calls it, just a hunk of metal, despite 5,000 years of historical evidence that support the contrary.
And Gates, who looked like a fish out of water in his interview with CNBC’s Becky Quick, couldn’t (or wouldn’t) come up with anything intelligible to say about the subject of gold. Because Gates is a famous billionaire, the Front Porches must then surmise that Gates is also an authority on the subject of money and anything else he may talk about.
Would Becky Quick care to interview Jim Grant of Ron Paul in the same format and at the same time of day? Maybe Quick will cut to the chase, settle the subject once and for all, by interviewing Paris Hilton or Justin Beaver. How about a 30-second public service announcement, starring Obama and Michael Jordan, tilted, “Just say ‘no’ to gold.”
Of the half-a-dozen cracked eggs, Jon Nadler, Dennis Gartman, Nouriel Roubini, Warren Buffett, Charlie Munger and Bill Gates, would any one of them make their points loud and clear that investors should kick gold to the curb by taking on Peter Grandich’s bet of $1 million that gold will reach $2,000 before it reaches $1,000?
Probably not. Each would have to clear it with the powers who have commanded them to play Lord Haw-Haw or Tokyo Rose. The U.S. is engaged in a currency, resources and geopolitical war, and Uncle Sam wants Americans to voluntarily throw themselves under the bus for a precious few oligarchs and political degenerates who have infested traditional American culture.